The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-07-17

should be legislated against. But
the cutlery against the bear" fac
ton, as enemies of the country" is
as childish as it is unmerited. To
secure the most money to the pro-
Queer. his dealings with the con-
sumer should be direct, aud without
the Intervention OF the middlemen,
who neither produce nor consume,
but prey upon the two real principals
in the affair. The profits Of the
middleman. his charges, commits
siops, etc., must be provided for in
some way, and are, in the long run,
about equally divided between buyer
and seller. The indirect method of
purchase and sale, with all its APP
parent defects and disadvantages,
was found to be the most satisfactory
of any, and the enc most suited TO
the extensive requirements of
modern trade, particularly when
the introduction OF steam made
il possible 10 find markets in
lands far removed from the To-
calities which produced the grain.
Shipments must DO made in bulk, as
small cousienments are nearly as ex-
pensivo to handle as large ones. The
foreign buyer after a while could
not afford TO maintain direct
relation with the small farmer and
preferred TO buy si the dealer who
had accumulated a large stock OF
grain in his warehouses. The time
and trouble thus saved, together
with the greater uniformity Of the
grain, aud the superior responsible
ity OF the dealer, more than compen-
stated for the slight advance over the
farmers price asked by the grain
trader. Large mills also began to
dispense with their agents gradually
and went TO the granaries for their
supplies, buying in such quantity
aud Of such grade as they required.
The logical result OF this system was
the entire transfer 10 the grain hand
leis Of the task Of collecting the
crops Of the country and storing them
at such points as had the greatest
facilities for the receipt and ship
ment. Cities with water and rail
connections thus became head
centers for the STORAGE OF grain, and
elevators were built for increased
convenience OF cereal handling.
Thus in the most natural way in the
world Duluth, Minneapolis, Chicago
and st. Louis soon formed a vast
funnel into whose throat the golden
crops OF the West flowed, to emerge
again iua compact stream at the
great entrepct OF the country, its
commercial head, New York.
IL is safe TO say that in no other
way than this can the great crops OF
this country DO collected for distri-
button The wonderful efficiency OF
the system may be surmisod when il
il stated that such portion OF the
800, 900 900 bushels Of whoat, 1900
900 bushels Of corn, and 650,0OO,OO0
bushels Of oats. raised annually, as
are not wanted for home oonsump-
ton can be ready for export at New
York within three months after the
maturing Of the respective crops
named.
We have Just shown that the meth
DDS now 10 vogue grew in an entirely
simple, natural manner out OF the
plain necessities Of the case, Just as
special members are developed 10
the animal creation 10 perform Ger.
tain special duties. Contemporanoous
with the Advancement in the plan Of
grain handling was the application OF
the principle OF protection for the
grain handlers.
In the FIRST place no man could al.
ford 10 heap up immense stores Of
grain without providing for some
means Of selling his property with a
reasonable profit. II he took his
chances he would perhaps have TO sell
when the market was depressed by
natural or artificial causes, tran
silently or for a long continued ap.
pearanco. The grain buyer, conse.
quently. had either 10 buy no more
than he could At once sell, or else
take loss II he had more than the
market could accommodate. Com
mission merchants. however, who re-
ceived consignments from the coun.
try. were in rather more Of dilemma.
The supply at harvest time was far in
excess OF the demand aud 10 make
a sale was practically 20 sacrifice
the interests oi the consignor. The
grain was held, and the accumulated !
expense used 10 consume q large part |
Of the proceeds when tho grain was
disposed Of finally. Then the prAc.
tice grew up Of selling the grain
ahead Tor delivery at specified times,
the seller holding the grain 10 store |
until II was wanted, adding enough |
to the present price 10 cover storage
expenses, insurance. interest, etc. |
The miller who could use, say 1000 |
bushels OF wheat a day was thus en-
abled 10 procure supply Of wheat,
at an ascertainod price, up 70 the |
very day when the next new wheat |
would como In. lie could figure out |
the cost OF his -four in advance and
make his contracts with safety as far |
ahead as he cared 70 without being
exposed 20 possible loss due TO uuex. |
pected fluctuations In grain values.
The exporter Who had an order for
800, 600 bushels Of wheat a month for
six months could sell Europe at
price that would leave him a margin
Of profit BY bidding for proper par.
cells aud deliveries. In other words,
the oountry's crops were moved, !
stored aud sold ahead Cor future
consumption or expectation Ia a safe, |
conservative, business ike way. The
cereals were divided into various |
grades. according 10 weight, cleanli.
ness, etc.. aud elevator receipts be. |
came negotiable paper Grain
handlers we're not compelled 10 keep
their funds tied up In the elevators,
but, with receipts a. collateral, OBJ.
taiDcd liberal advances from the
banks, who we're thus directly bene. |
hted by the piling up Of grain in the
various cities. but nillers and ex.